Apple Is Designing Its Own 5G Antennas

Apple spurned Qualcomm's 5G antenna module because it didn't fit the company's design standards, according to Fast Company.
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Apple is designing its own antennas for an upcoming line of 5G phones, according to a new report. 

Citing sources familiar with the phones' design plans, Fast Company reported on Friday that Apple is opting to design the antenna in-house, instead of using Qualcomm's QTM 525 millimeter-wave antenna, because Qualcomm's (QCOM) - Get Report version didn't suit its design specifications. Apple  (APPL)  shares closed at $324.95 on Friday. 

Apple is expected to release new 5G iPhones later this year. The report said that the tech giant still plans to use Qualcomm's Snapdragon X55 modem chips in the forthcoming phones, and may wind up using Qualcomm modems and antennas in at least one version of the new iPhone. Doing so may require Apple to make the phone thicker than desired, however. The makeup of the 5G components are likely to be finalized before the summer. 

Apple's track record on antenna designs isn't perfect, and with 5G phones expected to spur a fresh wave of sales, the stakes are high. 

Buyers of the iPhone 4 complained about dropped calls and blamed the Apple-designed antenna. The company admitted the dropped call issue in an open letter, but attributed it to issues with how signal strength was displayed on the phones and later issued a software update to remediate the problem.  

Stocks of companies that supply parts and services to Apple Inc. were mixed Friday.

Chemours (CC) - Get Report shares rose $3.69, or 23.53%, to $19.37.

R.R. Donnelley & Sons (RRD) - Get Report shares fell 28 cents, or 9.24%, to $2.75.

TOSHIBA  (TOSYY) ADRs rose 44 cents, or 2.75%, to $16.42.

Skyworks Solutions (SWKS) - Get Report shares fell $3.60, or 2.94%, to $118.99.

Apple is a holding in Jim Cramer's Action Alerts PLUS member club